Capital One Spark Checking Review

When you’re a small business owner, you need all the helpful tools you can get to be as efficient (and profitable) as possible. Having the right bank is half the battle, as many require minimum balances as well as charge transaction fees. Capital One recognized these financial challenges from their small business customers and decided to create Spark Business to help small business owners better manage their finances and do what they love most. Although their¬†service boast of no minimum balances and no transaction fees, is it actually beneficial? Find out in our Capital One Spark Checking review.

Capital One Spark Checking Review

What Is Capital One Spark Business?

Spark Business is an online platform from Capital One specifically geared toward small business owners. This online banking account that¬†does not charge any monthly or transaction fees along with no fees for Capital One or Allpoint ATMS. In addition to no limits, there is also no minimum balance required, allowing more flexibility for new business owners.

In addition to a Spark Business Checking Account, you can also opt for a Spark Business Savings Account. The savings account currently offers 1.00% APY for 12 months (offer valid until December 31, 2107) and allows you to earn 04.% APY after one year, which is¬†one of the highest rates in the nation, their website claims. This service also does not require any minimums nor does it charge any monthly service fees.

Services and Benefits

With your Capital One Spark accounts, you have the option to sync your checking and savings accounts to avoid any overdraft fees. Plus, you can use the mobile app to check your account anytime, anywhere.

Other digital tools they’ve created for users is the capability to not only pay bills online but also online invoicing as well as mobile deposits.

The Sparks Business dashboard allows business owners to better manage their finances in one place. And, as of January 2017, the company teamed up with financial programs Bill.com and Gusto to help track cash flow and integrate HR tools, according to a press release published by Capital One.

For those interested, you can use their Spark401K for either yourself as a solopreneur¬†or your business with employees.

Not to mention, outside of their banking services, they do inform users of various tips and resources to¬†help them exceed their goals through what they call Spark Business IQ, which is free information¬†available to anyone.

Capital One Spark Checking Costs

While Spark Business does offer most services free that other banks charge for, there are a few limitations.

Overdrafts warrant a charge of $35, and you will have to pay $25 for wire transfers. This is typical of any bank though. Another thing to keep in mind is that you will be limited to only six withdrawals per month from your savings account without any type of penalty, which is actually a federal mandate of all banks.

The Spark401K option also comes at a cost, but they are designed to be affordable and customizable. With their Safe Harbor 401K plan, it is a one-time setup fee of $495 and administration costs starting at $80 per month after. For the Traditional 401K plan, employers pay a one-time setup fee of $750 with administration costs starting at $100 after.

Pros and Cons

What would a Capital One Spark Checking review be without mentioning the pros and cons? Here are what we found as the pros and cons of this online banking service:

Pros:

Unlimited transactions

Free checking and savings accounts

Overdraft grace period when signing up from the Options menu

Mobile deposit

Online invoicing and free bill pay

Mobile app included to users for banking on-the-go

Great option for small businesses and startups

No monthly service fees

Support center available for any questions or concerns

Secure debit cards

Cons:¬†

You can only open accounts online and not through an individual or through visiting a branch. This may or may not be a con for you depending on how you prefer to set up your banking accounts.

The checking account does not earn any awards or interest.

The online bill payment option is not for businesses with annual sales exceeding $10 million.

Non-branch Capital One ATM fees can be up to $5 per transaction.

International ATM fees will apply for transactions outside of the U.S. ¬†and U.S. Territory in addition to the fees the ATM owner charges.

Mobile deposit is only available in the U.S. and U.S. Territory.

Currently only available to U.S. businesses and organizations.

If you would like to see more of Capital One Spark Business terms and conditions, be sure to read them here.¬†

Conclusion

Capital One Sparks Business Checking is a great option for freelancers and small business owners. With the biggest perks being the no monthly service fees and no minimum requirements, along with the various management tools, it allows businesses to incorporate their banking and financial management into one simple tool.

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